Returns to ACIAR investment

Returns to ACIAR investment have been shown by independent studies to be substantial.

ACIAR has a long history of formally and independently assessing the impact of the research it funds.

ACIAR has also commissioned several reviews of these studies to assess their credibility and placed all returns in the same terms (Raitzer and Lindner 2005; Pearce et al 2006; ACIAR 2006).

Since the eariler reviews, a significant number of further assessment studies have been undertaken. As a result, using the recently developed ACIAR Database for Impact Assessments (ADIA), which facilitates systematic analysis of the results of the impact assessments and provides summary information for a range of uses, an update of the previous studies of returns to ACIAR research was undertaken in 2008-09.

This review analyses the results of 37 impact assessments covering 90 projects.

For all the assessed projects there have been total benefits of around $12.6 billion for a total investment of approximately A$234 million in 2008 dollar present value terms. Of the total benefits kA$11.4 billion accrue to developing countries and A$1.2 billion to Australia (see Figure one for a regional breakdown of benefits). The average benefit cost ratio across all projects assessed is 54.

Figure 1: Distribution of total benefits from assessed ACIAR research projects by region

Given ACIAR’s partnership modality, many of the partner groups also contribute to the projects. It was estimated that $6.8 billion can be attributed to ACIAR’s funding of A$128 million across the 90 projects. .

Total ACIAR investment since its inception is around $2.1 billion. Hence even if it is assumed that no benefits are liekly to flow from the other projects (around 1200), ACIAR has invested in the terturns to a health 3:1 from a total funding for all of ACIAR's existence

With the total cost of these projects to ACIAR funding of around $130 million, this represents a benefit-to-cost ratio of $30 returned for each $1 provided (30:1).

Even if it is assumed all other projects did not achieve an impact the benefit-to-cost ratio is a healthy 3:1 from a total funding for all of ACIAR’s existence (in $A2004) of around $1.1 billion.

ACIAR provides a unique interface between Australia's foreign aid program and innovation system

A recent review of ACIAR has highlighted that ACIAR provides a unique interface between two very important parts of the Australian environment.

ACIAR integrates foreign aid policy with the Australian innovation system to provide mutual benefits to poorer nations in our region and to Australia.

ACIAR employs staff with skills and expertise in both areas of agricultural research and innovation for development.

As seen in Figure 2 ACIAR provides funding to support research activities that combine both areas to give a unique set of mutual benefits from both bilateral and multilateral activities.

ACIAR’s multilateral funding provides leverage to ensure that much of the vast stock of research undertaken by the Consultative Group on International Agricultural Research (CGIAR) system is focused on Australia’s priority regions.

Figure 2: ACIAR’s unique interface between foreign policy and Australia’s innovation system to deliver mutual benefits to both poor countries and Australia